ASHISH GARG Vs. SHREE SHYAM COTSPIN LTD

JUDGEMENT

(1.) The appellant has filed the present intra-court appeal impugning an order dtd. 20/2/2023 passed by the learned Company Court, whereby the appellant's application, CO.APPL.627/2022 in CO.PET.318/2003, was rejected. The appellant had moved the said application, inter alia, praying that the winding up proceedings relating to Shree Shyam Cotspin Ltd. ( hereftaer 'the company') be transferred to the National Company Law Tribunal for further proceedings under the Insolvency and Bankruptcy Code, 2016 (hereafter 'IBC'). The said application was resisted by respondent no.4, which is an asset reconstruction company.

(2.) It is claimed that respondent no.3 (Allahabad Bank) had assigned its secured debt as well as security interest relating to the company to respondent no.4.

(3.) Both the parties rely on the decision of the Supreme Court in Action Ispat and Power Pvt. Ltd. v. Shyam Metallics and Energy Ltd.: (2021) 2 SCC 641, whereby the Supreme Court had explained that if no irreversible steps have been taken by the Company Court in winding up of a company; the proceedings may be transferred to the National Company Law Tribunal under IBC. According to the appellant, no irreversible steps have been taken in winding up of the company; therefore, the winding up proceedings are liable to be transferred to the National Company Law Tribunal. This is stoutly contested by respondent no.4